Confederation of Workers Revolutionary Trade Unions (DİSK-AR) Research Center on the debates on the redefinition of the minimum wage during the year due to rising inflation, a research in which the situation of the minimum wage in relation to inflation and food inflation, its comparison with European countries and the legal situation regarding the update of the minimum wage, with questions and answers.
In the newsletter, “The 2022 minimum wage, which was set at 4 thousand 253 TL with an increase of 50.5% with claims of the largest minimum wage increase in history, remained well below inflation and food inflation in the third month of the year Government officials “The minimum wage is in December”, “The minimum wage is in December”. reasons such as “the salary was protected against inflation. These statements do not reflect the truth.” statements have been included.
Stating that the minimum wage does not protect against inflation, DİSK-AR said that the minimum wage was set at 2825.9 TL with an increase of 21.6% in 2021 and the increase remained at around 15 points below the rate of inflation.Undoubtedly, the most important reason for this was the increase in inflation in the last quarter of 2021. mentioned.
‘MINIMUM FEE’ WITH QUESTIONS
In the research prepared by DİSK-AR, the situation of the minimum wage with respect to inflation and food inflation, its comparison with European countries and the legal situation regarding the updating of the minimum wage were discussed with questions and answers.
HAS THE MINIMUM WAGE HELD AGAINST INFLATION?
Inflation, which the AKP took back to 29.7% in December 2002, pushed it up to 61.14% 20 years later.
The minimum wage increase was 14.3 percentage points above the annual inflation rate of 11.8% in 2019. In 2020, it was determined at 2,000,324 TL with an annual increase of 15% . In 2020, inflation was 14.6 and the increase in the minimum wage and the increase in inflation were parallel.
In 2021, the minimum wage was set at 2,825 lire with an increase of 21.6%. The 2021 minimum wage increase was about 15 percentage points below inflation.
The 50.4% increase in the minimum wage in 2022 remained about 10 points below the rate of inflation in the third month of the year.
Compared to the increase in food prices, which was higher than the CPI, the increase in the minimum wage was much lower. According to our calculation based on January 2018, the increase in the minimum wage remained below inflation, except for a few months. Between January 2018 and March 2022, the minimum wage index was generally lower than the food inflation index.
IS THE 2022 MINIMUM WAGE THE BIGGEST INCREASE IN HISTORY?
For 2022, a 50.4% increase in the net minimum wage and a 39.9% increase in the gross minimum wage have been made. However, this rate is not the largest increase in history, as claimed by the government. Since 1976, especially in times of inflation and high costs, the gross minimum wage has been increased by 40% or more 20 times.
The net minimum wage has been increased by more than 50% 15 times. In 1996, 1997 and 1998 the gross minimum wage was increased by more than 100%. Therefore, it is not consistent with the facts to say that the 2022 rise is the highest rate in history.
WHERE IS THE MINIMUM WAGE IN TURKEY IN THE EUROPEAN RANKING?
According to Eurostat data from January 2022, Turkey ranks second among the countries with the lowest minimum wage in Europe with 328 euros. Albania comes after Turkey with 248 euros. Luxembourg with 2,000,257 euros, Ireland with 1,775 euros and the Netherlands with 1,725 euros are among the top three in the list of countries with the highest minimum wage among EU countries.
IS THERE A LEGAL OBSTACLE?
Article 39 of Labor Law No. 4857 “Minimum wage limits may be determined by the Ministry of Labor and Social Security, through the Minimum Wage Determination Commission, no later than every two years, in order to regulate the economic and social conditions of all workers who work with an employment contract. whether or not they fall within the scope of this law. is indicated.
As is clear from the text of the law, the minimum wage “every two years at the latest” can be determined. Therefore, there are no restrictive provisions which would prevent the re-determination of the minimum wage before the expiration of a two-year period. At the request of the Ministry, the Commission can always be convened and the minimum wage can be redetermined.
Since the 1990s, the minimum wage has been determined more than once a year, especially in years when inflation and high costs are high. Prior to 2015, when the minimum wage was set at six months in some years, in some years the Commission met twice a year.